The One Big Beautiful Bill Act (OBBBA), signed into law by President Donald Trump on July 4, includes several provisions that impact nonprofit organizations and charitable giving. The Jewish Community Foundation (JCF) has compiled information on how the community will feel its impact.
Impact on community’s safety net
Two community organizations who financially assist those in need, Jewish Family Services (JFS) and Village Shalom, are preparing and enacting plans to deal with ramifications of the OBBBA.
The OBBBA cuts and restricts access to the Supplemental Nutrition Assistance Program (SNAP), often referred to as "food stamps." It also adds more work requirements for able-bodied adults and tightens eligibility for certain immigrant and refugee households who have previously accessed food assistance.
Individuals and families — especially older adults and single-parent households — may lose food benefits, even if they are struggling to make ends meet. Since many children rely on SNAP benefits to qualify for free or reduced-price school meals, many may also lose their automatic eligibility for school meals. With more households facing hunger and food insecurity in the community, food pantries and kosher meal programs will likely see higher demand and possible waitlists. Refugees and recent immigrants supported by nonprofit organizations may be particularly affected.
“The recent changes to SNAP and Medicaid benefits will directly impact many of the individuals and families we serve at JFS,” said Angela DeWilde, executive director of JFS. “While the full implications will remain unclear for many months, we do know that essential support services our community relies on are at great risk of being reduced or altered. Furthermore, the already complex and bureaucratic process to access these benefits is expected to become even more confusing, which will result in people not receiving the help they need.”
The OBBBA also cuts more than $1.2 trillion from Medicaid over 10 years, rolls back Medicaid expansion under the Affordable Care Act (ACA) and narrows eligibility and imposes stricter work requirements.
Thousands in Kansas City may lose Medicaid coverage, including older adults, people with disabilities and low-income families. Social service nonprofits may face an influx of uninsured individuals needing help accessing mental health care, addiction services, and case management (also basic medical services, prescription drugs and home health care — even though no Jewish agency directly provides these services, many see clients whose well-being will be impacted by this loss). Schools and senior programs may see ripple effects — such as people will be less healthy, impacting their ability to learn, thrive, enjoy life and contribute to the community — as more families experience financial instability tied to healthcare costs.
“At JFS, we are preparing to step up our support for individuals and families, including older adults, who may be affected,” DeWilde said. “However, the uncertainty surrounding these changes makes it difficult to plan effectively, especially as the timeline and details continue to shift. We are monitoring developments closely.
“We understand how unsettling this uncertainty is, especially when it touches the most basic needs of our neighbors,” she continued. “JFS is grateful to be part of a community that has stood together in difficult times for over a century, and we remain committed to stand with you as a source of support for our community, no matter what lies ahead.”
The OBBBA reduces federal Medicaid reimbursement for nursing homes, narrows eligibility for long-term care benefits, and disincentivizes home- and community-based services for older adults and people with disabilities. Medicaid funds more than 60% of long-term care nationally; cuts will hit nursing homes and in-home care services hard. Seniors relying on Medicaid for long-term care — either in facilities or at home — may face reduced access or experience wait times. Family caregivers may bear more practical, financial and emotional burdens, increasing demand for caregiver support services offered by nonprofit agencies.
"Based on local and national funding trends, we know that the future includes more Village Shalom residents requiring financial assistance,” said Simon Abrahms, CEO of Village Shalom. “By operating as effectively as possible and through careful planning, we're ensuring that residents and their families continue to benefit from evolving programs and services. Village Shalom invites donors, volunteers and community partners to join us in sustaining a vibrant, compassionate village, where local seniors thrive — with the comfort of knowing that no one has had to leave Village Shalom due to lack of funds."
For those who regularly support charities, JCF says there are many good reasons to continue to do so, whether or not they are benefiting from a tax deduction for those gifts.
“Our community needs you, now more than ever,” Suzanne Galblum Dicken, JCF director of philanthropy, said. “We know that philanthropy is an important value for many families regardless of tax incentives. As always, we encourage you to consult your tax advisors to assess how these changes may impact your personal financial situation.”
The Jewish Community Foundation is working with communal organizations to understand these challenges and ensure our community’s safety-net stays strong. They suggest the following actions for how people can continue to support the Jewish community:
- Open a JCF donor advised fund, which simplifies giving and offers tax and planning advantages. (For new JCF DAFs, JCF will match the first donation to the nonprofit of the donor’s choice, up to $1,000.)
- Donate appreciated stock.
- Donate to JCF’s Community Legacy Fund.
- Contact JCF to connect with local nonprofits in need of support.
- Consider accelerating payments for multi-year commitments.
- Create a planned gift for the future.
- Volunteer at community organizations, such as staffing the JFS Food Pantry, delivering meals to seniors through Kansas City Kosher Meals on Wheels, or helping support refugees at Jewish Vocational Service.
Tax implications on charitable giving
Community donors and philanthropists will also be affected by the OBBBA’s tax policies.
For standard tax deductions, The OBBBA makes permanent the increases under the Tax Cuts and Jobs Act of 2017 (TCJA), increasing the standard deduction for 2025 to $15,750 for single filers and $31,500 for taxpayers who are married and filing jointly. The new law also expands the “bonus” deduction for taxpayers 65 and older through 2028, based on filing status and modified adjusted gross income.
Under the new law, individuals who itemize may take charitable deductions only to the extent the charitable deductions exceed 0.5% of adjusted gross income (AGI) and only on the portion of contributions in excess of 0.5% of AGI. Furthermore, taxpayers in the top bracket can only claim a 35% tax deduction for charitable gifts instead of the full 37% that would otherwise apply to their income tax rate. The final bill also extended the 60% of AGI contribution limitation for cash gifts made to certain qualifying charities.
With even fewer taxpayers eligible to itemize and deductions capped for high-income earners, JCF predicts a continuation of a “chilling” effect on charitable giving that occurred in the wake of the TCJA. For some donors, it may make sense to accelerate charitable giving into donor advised funds during the remainder of 2025.
For non-itemized deductions, the OBBBA includes a provision, effective after 2025, allowing non-itemizers to take a charitable deduction of $1,000 for single filers and $2,000 for taxpayers who are married and filing jointly. As has been the case in the past, gifts to donor advised funds are not eligible.
After the TCJA went into effect, the number of households in the U.S. that itemized deductions dropped to under 10%. Over the last 20 years, the number of U.S. adults who give to charity in any given year has dropped from nearly two-thirds to less than half, according to some studies. Against this backdrop, the OBBBA’s deduction for non-itemizers has the potential to re-motivate charitable giving among a significant number of households.
The OBBBA also makes permanent the increase in the unified credit and generation-skipping transfer tax exemption threshold. The 2025 exemption is $13.99 million for single filers and $27.98 million married filing jointly. In 2026, these numbers will increase to $15 million and $30 million respectively.
Purely estate tax-based incentives to give to charity continue to apply only to the ultra-wealthy, likely resulting in a continuation of the taxpayer behavior triggered by the TCJA. In other words, most people will give to charity during their lifetimes and in their estates for reasons other than a tax deduction.
There is no guarantee that the estate tax exemption will stay high forever. As families work with their tax and estate planning advisors, many are viewing the next two years as an important window to plan ahead. The upshot of the new law is that high net-worth taxpayers now have more time to consider estate planning strategies, including charitable giving.
Suzanne Galblum Dicken can be contacted for more information about JCF or how the OBBBA affects philanthropy at (913) 327-8286 or by email at .
